Discount Treasury Bills
At present, Discount Treasury Bills have three distinct maturity periods - 3 months, 6 months and 12 months, respectively but because of the active secondary market of these securities they are available for almost any likely remaining maturity until 12 months in the secondary market.
Usually in the financial market, since the beginning, Discount Treasury Bills have been issued through public placements, at auctions.
Currently the Discount Treasury Bill auctions are held in the following manner:
- For 3 month Discount Treasury Bills - Tuesdays every week
- For 6 month Discount Treasury Bills - Wednesdays of every odd numbered week (Bi-weekly)
- For 12 month Discount Treasury Bills - Thursdays of every odd numbered week (Bi-weekly)
The payments take place on Wednesdays of the week following the week of the respective auction and so does the transfer of ownership, in the same way. The funding plans usually determine the offering amount of Discount Treasury Bills. As a matter of continuance the redemption dates of Treasury Bills also fall on Wednesdays.
Discount Treasury Bills in the primary market are sold directly only to primary dealers, the investors have to place orders for these securities with primary dealers. In the secondary market Discount Treasury Bills could be obtained, from primary dealers or in the branch network of the Treasury. Both resident and non-resident individuals as well as legal entities, and non-incorporated economic associations can purchase Discount Treasury Bills. Such investors can trade discount treasury bills through the whole maturity period without limitations.
More Information on Treasury Bill
|Treasury Bill Definition||Treasury Bill Interest Rate|
|Treasury Bill Current Rate||Treasury Bill Price|
|Treasury Bill Rate||Treasury Bill Yield|
|Canada Treasury Bill||Day Bill|
|Discount Bill||Treasury Bill History|
|US Treasury Bill|
Last Updated on : 18th July 2013